This thesis analyses the segment of the tourism industry - hotel. First thing presented is the theoretical background of the development of hotel industry, as well as business analysis and ways to improve management of hotel Bračka Perla. Hotel Bračka Perla is selected as an example of a small family hotel which is increasing segment in Croatia hotel offer, and the type and results of operations can be mapped to other hotels of similar structure. To determine the success of business this thesis analysed all relevant factors such as the structure of guests and guest satisfaction, competitive analysis and pricing policy, and most importantly financial results of hotel operations. Hotel Bračka Perla is successfully conducted and the results are positive, but it should be remembered that the improvement of business never stops and it is always possible to improve management, in order to keep pace with growing competition and to upgrade business result.